Coordinating commission to hotels and online travel agencies


  • Chi-Jen Chen Department of Tourism Management, Tajen University of Technology,



hotel, online travel agency, commission rate, channel coordination


The purpose of this research is to find the optimal commission rate that the hotels pay the online travel agencies under cooperative decentralization. A Stackelberg game theory is utilized to model their decision making. The online travel agency who sets and provides a commission rate to the hotel acts as the leader; the hotel who decides the guest room rate is the follower. The results show that the optimal commission rate under cooperative decentralization is the ratio of the online travel agency unit cost to total unit cost. The sum of these two firms’ profit will equal the profits under the centralized channel. Notably, even decentralization occurs if through coordination, it can still obtain the maximum profit the same as under centralization.




How to Cite

Chen, C.-J. (2022). Coordinating commission to hotels and online travel agencies. European Journal of Tourism Research, 31, 3117.